When the volatility of the stock market drives me crazy, I find solace in dividend stocks. Or rather, I console myself with stocks with the best dividends that I know will pay me a decent amount, regardless of what the market does. And there’s nothing quite like bagging some of these top-tier dividend-paying stocks while still flaunting high yields and lagging behind in the broader market despite the growth catalysts visible going forward. Here are three such titles that have caught my attention in recent times.
Not all retail sales are in a mess
Real estate income (NYSE: O) the stock has fallen by about 12% since the beginning of the year. With a dividend yield of 4.3%, I find this to be an attractive entry point.
With retail businesses stalled after coronavirus disease (COVID-1
Yet the nature of these tenants, their vast numbers and Realty Income’s business style saved the company from bad shocks. Where is the proof? In August, Realty Income raised 93.5% rent, up from 87.8% in June.
You see, the majority of Realty Income tenants work in non-discretionary businesses that enjoy resilient demand. Think dollar stores, convenience stores, and drugstores. Its five largest tenants today are Walgreens, 7-Eleven, General dollar, FedEx, is Dollar tree. Realty Income has around 600 tenants in total, making it a high quality diversified portfolio.
A more important reason Realty Income was able to weather the storm is that it is a real estate investment fund, which means it buys commercial properties and leases them. These are long-term leases, typically lasting 10-20 years. They are also all triple net leases, which means that tenants cover costs such as maintenance and insurance while Realty Income simply collects the rent. They also have built-in annual rental escalators. Historically, the rental income of the same Realty Income store has increased from 1% to 1.5% every year.
This is a foolproof business model for generating stable revenue and Realty Income also supports growth through new property acquisitions. For 2020, management is aiming for acquisitions worth between $ 1.25 and $ 1.75 billion.
Here’s what I like most: the fact that the predictable monthly lease payments that Realty Income collects can easily support the monthly dividends. Yes, Realty Income cuts you a monthly check and has increased its dividend every year since it went public in 1984. With the economy reopening, I love where Realty Income is today.
An energy stock with a 10% efficiency? Yes thanks
With the oil market defeating oil and gas stocks this year, it is no surprise that Corporate product partner (NYSE: EPD) stocks have lost nearly 39% year to date at the time of this writing, taking the dividend yield to a whopping 10.2%.
I could typically keep my distance from a sky-high-yielding oil stock today, but Enterprise Product Partners’ dividend seems safe, especially after the midstream energy firm’s decision to cancel its M2E4 pipeline project given current circumstances that don’t guarantee capacity. additional pipeline.
With the project now canceled, Enterprise expects projected capital expenditures for growth to decrease by $ 800 million through 2022. Instead, the company will use that money to reduce debt and reward shareholders in the form of share repurchases. The timing couldn’t be better. Although management has not mentioned dividends, it is very likely that it will offer shareholders a dividend increase this year, albeit only modestly, to maintain the track record of annual dividend growth of over 20 years.
Potential dividend growth, a 10% higher yield, solid financial data, and a predominantly paid business that largely isolates the company from oil price volatility really caught my eye on this energy dividend stock.
I see an underrated coronavirus stock here
Would you consider buying a health title that is already pushing its COVID-19 vaccine candidate into phase 3 trials, but is barely in the green so far this year? What if I also told you that this is no ordinary company, but with a rich 130-year history and top-notch brands in consumer health, pharmaceuticals, and medical devices behind it? Oh, and is this stock also a Dividend King, having increased its dividend annually for more than 50 consecutive years?
Sounds tempting, right? That is Johnson & Johnson (NYSE: JNJ) for you – a stock dividend that I would accumulate now for years to come.
Under current circumstances, the pace at which Johnson & Johnson is racing to produce a coronavirus vaccine would be reason enough for many to buy the stock. Everything is ready to begin trial phase 3 by the end of September. But there are many other compelling catalysts that make the company hard to ignore.
An extremely diversified portfolio of 26 products or brands generating at least $ 1 billion in annual sales, a formidable biotech pipeline and an impeccable track record of free cash flow and dividend growth over the decades make Johnson & Johnson the choice best for investors income. And don’t forget the aggressiveness with which the company grows: it is about to acquire Momenta Pharmaceuticals (NASDAQ: MNTA) for $ 6.5 billion to make a major advance in immunology.
With 58 consecutive years of dividend hikes and a 2.7% yield to boot, I think Johnson & Johnson stock will fall into place if bought today.